Altcoin Market Shows Signs of Recovery as Bitcoin Nears Resistance

According to BlockBeats, data from Coinglass indicates that after a recent surge in some altcoins, funding rates on major centralized and decentralized exchanges suggest a warming altcoin market. Some platforms have seen altcoin trading pairs return to neutral funding rates. However, as Bitcoin approaches the $90,000 resistance level, market sentiment has turned bearish again, though it has not yet entered the negative funding rate territory. This contrasts with previous market conditions where Bitcoin and Ethereum had neutral rates, and altcoins experienced negative rates. BlockBeats explains that funding rates are set by cryptocurrency trading platforms to maintain balance between contract prices and the underlying asset prices, typically applied to perpetual contracts. This mechanism facilitates the exchange of funds between long and short traders, without the platform charging a fee, to adjust the cost or profit of holding contracts, ensuring contract prices remain close to the asset prices. A funding rate of 0.01% indicates a baseline rate. When the rate exceeds 0.01%, it suggests a bullish market sentiment, while a rate below 0.005% indicates a bearish outlook.